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COVID-19: May 2020 Update from ABG
On May 4, 2020 Internal Revenue Service (“IRS”) and Employee Benefits Security Administration (“EBSA”) issued a final ruling regarding the extension of certain COBRA timeframes during the COVID-19 National Emergency in its “Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak” notice. The intent of this ruling is to provide relief that is immediately needed to preserve and protect the benefits or participants and beneficiaries in all employee benefit plans across the Unites States during the National Emergency.
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IRS and DOL Provide Deadline Relief
IRS and DOL Provide Relief for Participants and Plan Sponsors from Certain Time Deadlines Due to COVID-19 Pandemic
Yesterday, recognizing the impact of the COVID-19 Pandemic, the Internal Revenue Service and the Department of Labor released guidance that extends the period of time that a participant has in enrolling in coverage under a health plan, paying for COBRA continuation coverage, submitting claims for coverage and disputing denials of claims for benefits. The guidance also extends the period of time that a group health plan sponsor or administrator has to provide a COBRA election notice. Agency FAQs were also released related to the guidance. Essentially, the guidance provides that actions that must be taken with the time period from March 1, 2020 until 60 days after the time the federal government declares the COVID-19 emergency (referred to as the “Outbreak Period”) has ended will be disregarded .
The guidance states that the following actions that are required to be taken during the Outbreak Period are extended until after the Outbreak Period ends:
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The president signed The CARES Act into law on Friday March 27th
This law has many important components, one of which permanently reinstates coverage of Over the Counter (OTC) drugs and medicines as items eligible for reimbursement under Code 213(d) expenses in FSA, HRA, and HSA plans. With this law, the drugs and medicines will no longer require participants to have a prescription to prove eligibility. In addition to the reinstatement of OTC eligibility, the bill expands the eligible OTC definition to include menstrual care products (i.e. tampons, pads, etc.).
Read more … The president signed The CARES Act into law on Friday March 27th